Ghana’s 2024 debt has tumbled to 61.8% -Dr Gideon Boako

The Member of Parliament for Tano North, Dr Gideon Boako, says Ghana’s Public Debt-to-Gross Domestic Product (GDP) ratio for 2024 has dropped considerably to 61.8%, marking a notable decline from the peak of 80.4% recorded in 2020.

Speaking in an interview with journalists in Accra yesterday, the former Spokesman for Vice President Mahamudu Bawumia, said the reduction was a direct result of the government’s debt management strategy, which has successfully restored the country’s debt sustainability.

“With this GDP figure out, our new Public Debt-to-GDP ratio for 2024 now stands at 61.8%,” he stated, adding that “this development is expected to be officially announced by the Finance Minister in today’s budget presentation.”

The latest debt ratio is also lower than the pre-COVID-19 level of 65.7%, underscoring the effectiveness of the government’s fiscal policies.

Dr Boako emphasised that the strategy implemented by the New Patriotic Party (NPP) government had yielded positive results in stabilising Ghana’s economy.

“This is a massive drop in the Public debt-to-GDP ratio from 80.4% in 2020. This is also below the pre-COVID-19 level when the debt-to-GDP ratio was 65.7%,” he added.

The reduction in debt has significant implications for Ghana’s financial outlook under the International Monetary Fund (IMF) programme.

Dr Boako expressed optimism that Ghana could achieve the debt sustainability target of 55% ahead of the initial 2028 projection.

“This means that Ghana could reach the debt sustainability target of 55% under the IMF programme earlier than the planned 2028 target year, if only the new government continues to implement the debt management strategy,” he said.

Despite these improvements, concerns have been raised about the accuracy of fiscal data under the new administration.

Dr Boako hinted at the possible manipulation of economic figures by the Minister for Finance to create a misleading narrative about Ghana’s economic state.

“We have also picked up intelligence about data manipulation in the fiscal outturn for 2024 as the Minister for Finance is trying hard to manufacture a narrative to support the NDC’s baseless claims of inheriting a bad economy,” he alleged, urging the government to ensure transparency in financial reporting.

Dr Boako also revealed that Ghana’s economy recorded a real GDP growth of 5.7% in 2024, exceeding the initial budget target of 3.1%, which was later revised to 4%.

This marks the highest economic growth rate since 2020 and signals a strong recovery from the global economic downturn of previous years.

“The Ghana Statistical Service in today’s announcement puts Ghana’s real GDP growth for 2024 at 5.7%. The budget target was 3.1%, revised to 4%,” he noted.

This latest economic performance follows a steady recovery in 2023, when Ghana’s GDP grew by 2.9%, surpassing the 1.5% target for that year.

The upward trend is seen as evidence that the economy has successfully rebounded, defying earlier concerns about instability.

“The release of GDP figures also confirms that the rebound in the economy was real,” Dr Boako asserted and attributed this progress to policies implemented by the previous NPP administration, which helped restore confidence in key sectors.

Despite the positive economic indicators, Dr Boako criticised the current National Democratic Congress (NDC) administration for misrepresenting Ghana’s economic situation. He argued that the strong economic growth figures contradict claims that the economy was mismanaged by the previous government.

“The NDC, since assuming government, has been claiming the economy was badly managed by the NPP. These developments showed that the economy was doing well before the NDC took over,” he stated.

However, concerns remain over the credibility of fiscal data released by the Finance Ministry. Dr Boako accused the Minister of Finance of attempting to manipulate financial reports to support the NDC’s narrative of inheriting a struggling economy.

“The Minister should be candid enough to report only verified data, as his primary responsibility is to make payments only based on verified claims,” he stressed.

He called for transparency in government reporting to ensure accurate economic assessments for future policymaking.

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